Origen to Proceed with the Acquisition of Brazilian REE Project
MWN-AI** Summary
Origen Resources Inc. (CSE: ORGN) has announced the successful completion of the due diligence fieldwork for its acquisition of two licenses in Brazil covering 3,978 hectares in a promising rare earth elements (REE) district in Piauí State. This project, highlighted for its potential to elevate Brazil's status in the REE sector, is part of an agreement with Weberte Giovan de Almeida and Associates, first disclosed on October 29, 2025.
During the due diligence phase, Origen's team conducted comprehensive fieldwork that included collecting soil and rock samples. Initial findings revealed notable REE enrichment in areas of lateritic soil overlaying sandstone. The use of both X-Ray Fluorescence (XRF) and Scanning Electron Microscope (SEM) analyses indicated the presence of REE minerals and confirmed the effectiveness of soil sampling methods in exploring REE prospective targets.
CEO Gary Schellenberg expressed optimism about the findings, emphasizing their potential impact on the region and the company's strategy to capitalize on a first-mover advantage. The acquisition terms stipulate a 90% interest in the licenses, with an initial payment of $50,000 USD and the issuance of 2,000,000 shares, followed by a commitment of $1,000,000 in exploration expenditures over the next two years.
The deal also grants Origen a right of first refusal on five additional exploration concessions in Piauí State. As it focuses on this new Brazilian venture, Origen continues to maintain interests in other projects, including lithium and gold-silver assets in Argentina and British Columbia. Analytical results from the laboratory are pending, which could further validate the project's potential.
MWN-AI** Analysis
As Origen Resources Inc. proceeds with the acquisition of two exploration licenses in Brazil's emerging rare earth elements (REE) sector, several market dynamics warrant consideration. The completion of due diligence, highlighted by positive field research and analysis, underscores Origen's strategic move into the Piauí State, an area exhibiting promising REE potential.
From an investment perspective, Origen's decision to acquire a 90% interest in the licenses for $50,000 USD and 2 million shares presents an attractive entry point, especially considering the escalating global demand for rare earths driven by advancements in green technology, electric vehicles, and electronic products. The company's thorough exploration approach, which includes soil sampling, XRF, and SEM analysis, indicates a robust methodology for identifying significant mineralization that could enhance Origen’s asset base.
Key highlights from the fieldwork suggest a favorable geological environment, with initial findings indicating REE enrichment in laterite and sandstone units. The ability to delineate basin-scale targets through innovative prospecting methods increases the project's viability, making Origen a contender in the competitive REE space.
Investors should also factor in the terms of the acquisition, which not only allows Origen to secure a strategic position in a burgeoning market but also provides the vendor with a stake in the company and influence in its operations. This participatory approach may align incentives, driving deeper exploration and development efforts.
In conclusion, Origen’s proactive strategy of securing substantial land holdings in Brazil, coupled with strong initial due diligence outcomes, positions the company favorably. Investors seeking exposure in the REE market should monitor this acquisition closely, as Origen could emerge as a pivotal player in the industry, capitalizing on first-mover advantages while navigating the complex landscape of resource extraction.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Vancouver, British Columbia--(Newsfile Corp. - December 18, 2025) - Origen Resources Inc. (CSE: ORGN) (FSE: 4VXA) (the "Company" or "Origen") is pleased to announce the successful completion of the due diligence fieldwork component pursuant to the agreement with Weberte Giovan de Almeida and Associates (announced October 29, 2025). Based on initial field observations by Origen during due diligence, the Company will be proceeding with the acquisition of two licences covering 3,978 hectares in an emerging rare earths district located in Piauí State in the northeastern region of Brazil (the "Property").
"Based on our initial observations, this project has all the ingredients to turn into something significant and launch this region of Brazil into the REE spotlight. We are excited by the level of confidence and enthusiasm that the field due diligence program has generated, and we will be moving forward with the acquisition to exploit first mover advantage and secure a basin-scale land position," states Gary Schellenberg, CEO.
During the fieldwork phase Origen staff visited both licenses, collecting soil and rock samples at key showings and other outcrops of what are understood to be the prospective strata. To expedite the due diligence process, Origen then conducted handheld X-Ray Fluorescence (XRF) analysis on all soil samples and selected rocks. In addition, Scanning Electron Microscope (SEM) analysis on selected rocks successfully identified a REE mineral in sandstone/siltstone.
Key Highlights of the Fieldwork Phase Include:
- Enrichment of REEs was found to occur in laterite overlaying REE-bearing sandstone units and in soil between blocks of rock deeper in the lateritic profile.
- Radiometric response was sometimes observed to increase in proximity to REE prospective strata. These responses and phosphate geochemistry have been demonstrated to help delineate prospective REE targets.
- XRF results indicate that soil and talus fines sampling should be effective exploration methods for delineating REE enrichment and phosphate stratigraphic intervals nodules and also confirms the importance of phosphate nodules as a prospecting tool.
- Radiometric methods can identify prospective REE sites for follow-up soil surveys.
- Phosphate nodule outcrops and radiometric anomalies that define prospective strata were mapped across the licences and found to have substantial spatial distribution.
- Bedding on the licenses is consistently shallow dipping which assists in predicting the trace of prospective strata across the licenses. Stratigraphy combined with the prospectivity tools outlined supports basin-scale target generation.
Based on the initial evidence of REE mineralization along ridge exposures, evaluation of valley clays and soils for REE accumulation is warranted.
Pending confirmatory laboratory analytical results, the fieldwork stage of the due diligence has been positive in confirming the potential of the licenses. Analytical results will be released once they are received from the laboratory.
John Harrop, P Geo., a Qualified Person as that term is defined in NI 43-101, has supervised the preparation, or approved the scientific and technical disclosure in the news release. Mr. Harrop is employed by Coast Mountain Geological Ltd. He is not independent of the Company as defined in NI 43-101.
Terms of the Acquisition
To acquire a 90% interest, Origen will pay the Vendors $50,000 USD and issue 2,000,000 shares. Within two years of the completion of the Due Diligence Period Origen will incur $1,000,000 of exploration expenditures. After this two-year period, Origen will issue to the Vendor a number of shares of the Company equal to 15% of the outstanding shares and grant the Vendor a seat on the Board of Directors. The total number of shares that will make up 15% ownership will include the 2,000,000 shares granted after the Due Diligence Period.
The Vendor also grants Origen right of first refusal on their five (5) other exploration concessions totalling approximately 9,903 hectares located in Piauí State that are analogous to the two (2) acquisitions of this announcement.
About Origen
Origen is fully focused on this new Brazilian REE acquisition, on its 100% interest in the Los Sapitos Lithium project in Argentina and its 100% owned gold-silver Wishbone project in the Golden Triangle of British Columbia, along with a property portfolio of three 100% owned precious and base metal projects in southern British Columbia.
On behalf of Origen,
Gary Schellenberg
CEO and Director
For further information, please contact Gary Schellenberg, CEO at 604-681-0221.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Certain of the statements made and information contained herein may constitute "forward-looking information." In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278494
FAQ**
How does Origen Resources Inc ORGN:CC's recent acquisition in Brazil position the company within the global rare earth elements market, particularly regarding competition in emerging markets?
What are the potential environmental impacts or regulatory challenges Origen Resources Inc ORGN:CC might face with its new rare earths project in Piauí State, Brazil?
How will the outcomes of the ongoing laboratory analyses influence Origen Resources Inc ORGN:CC's exploration strategy and investment decisions regarding the licenses acquired?
Given Origen's focus on diversifying its portfolio with international projects, what strategic advantages does the company anticipate from its acquisitions in Brazil and Argentina, and how might this affect its operations in British Columbia?
**MWN-AI FAQ is based on asking OpenAI questions about Origen Resources Inc (CNQC: ORGN:CC).
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